From the late 1980s to the early 1990s, Japan experienced sustained economic prosperity, which was caused by a large number of speculative activities induced by the appreciation of the yen. The "Plaza Agreement" signed with close allies and loose monetary policy brought about extreme credit inflation, and the flood of liquidity made the housing market, bond market and stock market particularly prosperous.But this super boom has turned out to be a disaster. With the collapse of Japan's bubble economy, the economy has experienced a great setback. When real estate finally gets out of control and exceeds the purchasing power of the overwhelming majority of people, the market inevitably collapsed, pulling the financial system and the whole economy into the abyss.Whether it is the bursting of the real estate bubble in Japan in the early 1990s or the "08-style Nightmare" in the United States, profound warning value is there for us. To prevent the violent adjustment of the asset bubble from triggering the "Minsky Moment", the task is quite arduous. On this issue, we must deeply remember the lessons of Japan in that year and the American version ten years ago, earnestly strengthen anticipation management and crisis response plans, and be well prepared for it.
